Estate Planning Tips for the Single Parent

There is so much happening in the world today. The coronavirus pandemic has caused many parents to wonder what would happen to their children if something were to happen to them. This is of particular concern for the single parent. For some parents, they have their child's other parent to protect their child's future. For single parents, the situation is quite different. Whether there is no co-parent involved, the other parent is unfit, deceased or simply incapable of caring for the child, having an estate plan is crucial to ensure the children are cared for in the event the unexpected happens. 

WHY DO YOU NEED AN ESTATE PLAN? 

A common misperception is that you only need an estate plan if you are wealthy or have a lot of assets. All adults need an estate plan. For parents, an estate plan is a crucial tool to communicate your wishes for your children, to protect your children’s assets and to appoint someone to care for your children in the event you are unable. 

WHAT WOULD HAPPEN IF I DIDN’T HAVE A PLAN?

If you fail to plan for your children, then the Court may have to decide what will happen to your children and your children’s assets. They could go to the other parent, there could be fights over what happens to them or the Court may have to appoint a third-party. 

One of the major reasons to have an estate plan as a single parent is to appoint a guardian over your child. If the other parent is involved, then most likely the other parent will be appointed as guardian over the child; however, if the other parent is not involved (or incompetent) then the Court will look to the direction of the parent with physical possession of the child. A proper estate plan will incorporate a plan for the child in the event you become incapacitated or pass away. 

An estate plan can appoint a conservator or trustee to manage any property, money or other assets in your estate on behalf of your minor children. These financial assets could include sources of income and financial support such as bank accounts, stocks and bonds, retirement accounts, insurance policies or social security benefits. The conservator/trustee may not be the same person as your children's guardian. This is especially important in the event the other parent is appointed as guardian over the child.   

3 LEGAL DOCUMENTS A SINGLE PARENT SHOULD HAVE 

If you are a single parent, these documents should be part of your estate plan: 

1. Will or Trust 

A will specifies your wishes to distribute your estate in the event of your death, while a trust manages the distribution of your assets either while you are living or after your death. This tool also allows you to appoint a guardian over your child and a trustee/conservator over your child’s money. 

2. Durable Power of Attorney 

A durable power of attorney (POA) authorizes another person to manage your financial affairs if you become unable to do so yourself. A POA can be temporary and you can put very specific conditions on what situations the power of attorney would go into effect. This is of crucial importance to make sure that your child’s essential needs are met in the event something unexpected happens to you and you are temporarily unable to provide for your child. Your Power of Attorney representative can handle your financial, tax and legal matters if you are not able to do so. 

3. Advanced Health Care Directive 

When married people become seriously ill, their spouse typically makes health care decisions. For a single parent, an advanced health care directive gives you the ability to appoint someone to make decisions on your behalf in the event you become incapacitated and cannot communicate for yourself. It also gives you the ability to make decisions in advance regarding your treatment preferences such as whether you want to be on life support. 

Single parents have unique concerns in estate planning. Prepare for the future by contacting your trusted legal partner, the team at SmithTaire Legal. During this difficult time, our virtual office is open and we can help you via telephone, email, FaceTime, Zoom, DocuSign and tools. Schedule an appointment with us today to discuss your situation.